Operator of tollway oases faces foreclosure

Monday

Jul 27, 2009 at 12:01 AMJul 27, 2009 at 7:31 PM

The company that manages the Illinois Tollway oases is being foreclosed upon, but that won’t affect operations. In fact, the foreclosure proceedings will help the tollway recoup $1.3 million in back rent.

Thomas V. Bona

The company that manages the Illinois Tollway oases is being foreclosed upon, but that won’t affect operations.

In fact, the foreclosure proceedings will help the tollway recoup $1.3 million in back rent.

Wilton Partners Tollway LLC leased the seven tollway oases in 2002, invested more than $100 million in rebuilding them and takes in revenue from retail operations there.

But it didn’t pay rent to the tollway during parts of 2006 and 2007, prompting the tollway last fall to complain to iStar Financial, which holds Wilton’s construction loans, tollway spokeswoman Joelle McGinnis said. In turn, iStar found Wilton in default on its loan agreement, and filed a foreclosure notice in April. But because it didn’t file that notice in all counties with oases, it refiled recently.

McGinnis said iStar took over the 25-year lease of the oases and contracted with Wilton to continue operating them in the meantime. Eventually iStar could retain Wilton, take over operations itself or find another manager, McGinnis said.

Regardless of how it happens, the tollway is guaranteed in the lease deal to see the oases maintained. Wilton has been good at that, even if the company isn't as good at paying its bills, McGinnis said.

“Really. there have been no outward effect on the oases in the eyes of the customers,” McGinnis said. “They continue to be clean, safe facilities that offer a wealth of services.”

The Belvidere Oasis, on Insterstate 90, has McDonald’s, Starbucks, Subway, Taco Bell, Panda Express, Auntie Annie’s and other retailers, as well as a tollway customer service kiosk.

The tollway will also get its back rent from iStar.

A phone number listed for Wilton Partners, the Los Angeles-based parent company of the leasing group, did not work.

ExxonMobil has a separate lease deal with the tollway for its gas stations and convenience stores, and is up to date on rent, McGinnis said.

Thomas V. Bona can be reached at (815) 987-1343 or tbona@rrstar.com.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.